Senate
House
Joint
Bill Status
WV Code
Audits/ Reports
Educational
Contact
home
home

Introduced Version House Bill 2045 History

   |  Email


hb2045 intr
H. B. 2045


(By Delegates Stemple, Beach, Swartzmiller and Anderson)

[Introduced February 9, 2005; referred to the

Committee on Agriculture and Natural Resources the Government Organization.]




A BILL to amend and reenact §19-2C-1, §19-2C-2, §19-2C-3, §19-2C-4, §19-2C-5, §19-2C-5a, §19-2C-6, §19-2C-6b, §19-2C-6c, §19-2C-7, §19-2C-8, §19-2C-8a and §19-2C-9 of the Code of West Virginia, 1931, as amended; and to amend said code by adding thereto three new sections, designated §19-2C-5b, §19-2C-6d and §19-2C-9a, all relating to auctioneers; adding and amending definitions; clarifying application and renewal procedures; establishing and modifying fees; bonding requirements for apprentice license; licensing requirements; requiring photo identification for examination; requiring notice of change of address; limiting number of apprentices auctioneer may sponsor; clarifying licensing by reciprocity; requiring continuing education; modifying criminal and civil penalties; requiring escrow account; establishing settlement procedures; and making technical corrections.

Be it enacted by the Legislature of West Virginia:
That §19-2C-1, §19-2C-2, §19-2C-3, §19-2C-4, §19-2C-5, §19-2C-5a, §19-2C-6, §19-2C-6b, §19-2C-6c, §19-2C-7, §19-2C-8, §19-2C-8a and §19-2C-9 of the code of West Virginia, 1931, as amended, be amended and reenacted; and that said Code be amended by adding thereto three new sections, designated §19-2C-5b, §19-2C-6d and §19-2C-9a, all to read as follows:
ARTICLE 2C. AUCTIONEERS.
§19-2C-1. Definitions.
For the purposes of this article:
(a) The term "auctioneer" means, and includes, a person who sells goods or real estate at public auction for another on commission or for other compensation. The term "auctioneer" does not include: (1) Persons conducting sales at auctions conducted by or under the direction of any public authority or pursuant to any judicial order or direction or to any sale required by law to be at auction; (2) the owner of any real or personal property when personally sold at auction by such owner and such owner has not personally conducted an auction within the previous twelve-month period; (3) persons conducting sales pursuant to a deed of trust or other security agreement; (4) fiduciaries of estates when selling real or personal property of such estate; (5) persons conducting sales on behalf of charitable, religious, fraternal or other nonprofit organizations; and (6) persons properly licensed pursuant to the provisions of article twelve forty, chapter forty-seven thirty of this code when conducting an auction, any portion of which contains any leasehold or any estate in land whether corporeal or incorporeal, freehold or nonfreehold, when such person is retained to conduct an auction by a receiver or trustee in bankruptcy, a fiduciary acting under the authority of a deed of trust or will, or a fiduciary of a decedent's estate: Provided, That nothing contained in this article exempts persons conducting sales at public markets from the provisions of article two-a of this chapter, where the sale is confined solely to livestock, poultry and other agriculture and horticulture products.
(b) The term "public auction" means any public sale of real or personal property when offers or bids are made by prospective purchasers and the property sold to the highest bidder.
(c) The term "commissioner" means the Commissioner of Agriculture of West Virginia.
(d) The term "department" means the West Virginia Department of Agriculture.
(e) The term "person" means corporations, partnerships, associations, societies, individuals or group of individuals or any employee, servant or agent acting or employed by any person.
§19-2C-2. License required.

After the thirtieth day of June, one thousand nine hundred seventy-four, no No person shall conduct an auction as an auctioneer in this state West Virginia unless he or she shall have has first obtained from the commissioner a an auctioneer license therefor from the commissioner.
§19-2C-3. Application for license; renewal; Department of Agriculture as statutory agent for licensees; fee.

Any person who wishes to conduct an auction as an auctioneer may apply for a license on forms prescribed by the commissioner and containing such information as the commissioner may require by a legislative rule promulgated in accordance with article three, chapter twenty-nine-a of this code. A nonreturnable application fee of fifty dollars shall accompany each application as well as a license fee of fifty dollars. All fees collected under this article shall be paid into a special revenue fund in the state treasury to be used by the department of agriculture for the expressed purpose of administering and enforcing this article and for providing continuing education for auctioneers: Provided, That for the fiscal year ending the thirtieth day of June, one thousand nine hundred ninety-seven, fees collected under this article shall be paid into the state fund, general revenue.
In addition to the payment of fees, an applicant shall file with his or her application a bond as required in section four of this article.
(a) An applicant for an auctioneer or apprentice auctioneer

license shall:
(1) Submit the application on specified forms and provide all information required by the commissioner by rule;
(2) Pay a nonrefundable application fee of fifty dollars;
(3) Pay the license fee of fifty dollars;
(4) File the bond required by section four of this article.
(b) The commissioner shall, within thirty days after the receipt of an application, notify the applicant of his or her eligibility to be examined at the next regularly scheduled examination, as well as the date of the examination.
(c) In the event the license is denied, the commissioner shall refund the license fee submitted with the application to the applicant.
(d) Licenses issued expire on the thirty-first day of December of each year but are renewable upon the payment of the annual license fee within sixty days of the expiration date. Renewals received more than sixty days after the expiration date are subject to a late renewal fee of twenty-five dollars in addition to the annual renewal fee. Renewal forms will be mailed to current licensees. Failure to receive the renewal form does not relieve a licensee of the obligation to renew. The commissioner shall not renew licenses which have been expired for more than two years or more and the former auctioneer or apprentice auctioneer shall is required to take the written and oral examination, and pay the examination fee, pay the nonrefundable application fee and pay the annual license fee in order to renew his or her license be issued a valid license. The commissioner shall not renew a license unless the applicant complies with the other requirements of this article. No renewal license will be issued unless the applicant complies with all other requirements of this article.
(e) The commissioner shall not issue or renew a license if the applicant or licensee has been convicted of a felony or crime involving forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or other like offense during the five years immediately preceding application or renewal.
Where an auctioneer or apprentice auctioneer requires a duplicate or replacement license or a license reflecting a change in information, the auctioneer or apprentice auctioneer shall submit a fee of five dollars with the request.
(f) All requests for a duplicate or replacement license must be in writing and must be accompanied by a fee of ten dollars.
(g) All requests for the issuance of a letter in good standing must be in writing and must be accompanied by a fee of twenty-five dollars.
(h) The State Department of Agriculture is the agent for the purpose of service of process on any licensed auctioneer for any action occasioned by the performance of the duties of the auctioneer. Every licensed auctioneer, by virtue of his or her application for a license, shall be considered to have consented to the statutory agency.
(i) All fees collected under this article shall be paid into a special revenue fund as provided in section four-c, article one of this chapter.
§19-2C-4. Bond required.

(a) Every Each person applying for a license as an auctioneer, apprentice auctioneer or continuing to act as a licensed auctioneer or apprentice auctioneer shall file with the commissioner and maintain in full effect a bond satisfactory to the commissioner and in form and amount as prescribed by the commissioner pursuant to the rules and regulations promulgated in accordance with this article by rule: Provided, That in no event shall the amount of such the bond be less than ten thousand dollars for an auctioneer and in no event or less than five thousand dollars for an apprentice auctioneer. The bond may include, at the option of the applicant or licensee, corporate surety bonding, collateral bonding (including costs and securities), establishment of an escrow account, an irrevocable letter of credit or a combination of these methods. If collateral bonding is used, the auctioneer applicant or licensee may elect to deposit cash, or any of the following collateral securities or certificates: bonds of the United States or its possessions, of the federal land bank, or of the homeowners' loan corporation; full faith and credit general obligation bonds of the State of West Virginia, or other states, and of any county, district, or municipality of the State of West Virginia or other states; or certificates of deposit in a bank in this State, which certificates shall be in the name of the department. The cash deposit or market value of such the securities or certificates shall be equal to or greater than the sum of the bond. It shall be the duty of the applicant or licensee to ensure the market value of such the bonds is sufficient. The commissioner shall, upon receipt of any such deposits of cash, securities or certificates, promptly place the same with the Treasurer of the State of West Virginia whose duty it shall be to receive and hold the same in the name of the State in trust for the purpose for which the deposit is made when the license is issued. The applicant or licensee making the deposit shall be entitled from time to time to receive from the State Treasurer, upon written approval of the commissioner, the whole or any portion of any cash, securities or certificates so deposited, upon depositing with him or her in lieu thereof, cash or other securities or certificates of the classes herein specified having value equal to or greater than the sum of the bond. Such The bond shall be conditioned upon the faithful compliance by the auctioneer applicant or licensee with the provisions of this article and the payment of all required taxes, fees and penalties imposed by this State and its political subdivisions, as well as the payment by any auctioneer licensee of any final judgment obtained for damages arising out of his conduct or duties as an auctioneer. Such The bond shall be open to public inspection.
(b) Each person applying for an apprentice auctioneer license, within thirty days after receiving notice of passing the examination, shall file a bond with the commissioner in an amount of no less than five thousand dollars and in the same form as authorized by subsection (a) of this section.
§19-2C-5. Requirements for auctioneer license; rules; duties of licensee.

(1) (a) Each person seeking a an auctioneer license hereunder after the effective date of this section shall submit satisfactory evidence to the commissioner showing:
(a) (1) That he or she has successfully completed the written and oral examinations provided for in this article;
(b) (2) That he or she has a good reputation;
(c) (3) That he or she is of trustworthy character;
(d) (4) That he or she has met the apprenticeship requirements set forth in this article, if applicable;
(e) (5) That he or she is a citizen of the United States; and
(f) (6) That he or she has a general knowledge of the auctioneering profession and the principles involved in conducting an auction; and
(7) That he or she is at least eighteen years of age
.
(2) (b)(1) The commissioner shall promulgate such reasonable rules and regulations as he or she considers necessary to carry out the intent and the administration and enforcement of this article, which said rules and regulations shall be promulgated in accordance with the applicable provisions of chapter twenty-nine-a of this code propose rules for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code necessary to implement and enforce the provisions of this article, including, but not limited to: (A) the examinations administered under this article; (B) issuing and renewing licenses; (C) denying, suspending, revoking or reinstating licenses; (D) continuing professional education requirements for licensees; (E) professional conduct requirements; (F) hearings; and (G) the maintenance and inspection of records.
(2) All rules in effect at the time the amendment to this section is effective remain in effect until they are superseded.
(3) The commissioner may propose rules for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code setting or changing the amount of a fee authorized by this article
.
(3) (c) Each licensee shall auctioneer and apprentice auctioneer must carry his or her pocket license and promptly produce it for inspection such license at all sales conducted by or participated in by such the licensee. when requested to do so by any person and The auctioneer shall keep complete and accurate records of all transactions engaged in for a period of six months. which The records shall be open to inspection by the commissioner or his or her authorized representative.
(d) If a buyer premium or any surcharge is a condition to sale at any auction, the amount of the premium or surcharge must be placed in the advertisement and announced at the beginning of the auction. A written notice of this information must also be conspicuously displayed or distributed to the public at the auction site.
§19-2C-5a. Examinations of applicants; excuse for illness; fee renewal.

(a) Examinations shall be held in April and October of each year, at a time and place to be designated by the commissioner or his or her authorized representative.
(b) Any individual auctioneer applicant may take the examination for auctioneer or apprentice auctioneer at the regularly scheduled time and place. The apprentice auctioneer's auctioneer license examination shall consist of is a written examination. The auctioneer's auctioneer license examination will consist of is both a written and oral examination. The passing grade for any written examination shall be seventy is seventy-five percent out of one hundred percent. The oral portion will be examination is scored by the commissioner or his or her authorized representative. If the applicant fails either the written or oral portion of the examination, no license will be issued and he or she shall not be administered may not take the examination again until the next regularly scheduled examination date. A person who is qualified for an auctioneer's license as provided for in this article is considered to be a professional in his or her trade.
(c) One notice only Only one notice of the examination shall will be mailed to the applicant at the address given on the application. If the applicant fails to appear for such the examination, except as otherwise provided herein pursuant to this subsection, a new application and a new fee shall be applicable fees are required to be submitted. No fee shall be The examination fee will not be returned except when unless the applicant fails to take the examination because of illness evidenced by a doctor's certificate sent to the commissioner. If excused because of illness the applicant shall will be admitted to the next scheduled examination without paying an additional examination fee. No applicant shall will be excused from taking the scheduled examination for any reason other than illness unless in the judgment of the commissioner the applicant would suffer undue hardship by not being excused.
(d) An The examination fee of is fifty dollars. It is in addition to any other fees required by this article, shall be collected from each person taking such examination. If the applicant has previously paid the examination fee and successfully completed the apprentice auctioneer's auctioneer examination, no additional examination fee will be is required to take the auctioneer's auctioneer examination as provided for in this article.
(e) Each applicant must exhibit photographic identification when taking the examination.
(f) If the commissioner determines that an applicant does not qualify for a license, he or she shall so will notify the applicant by certified mail. The notice shall must state the reason for refusal to grant a license and the applicant's right to appeal the commissioner's decision within twenty days of receipt of the notice.
(g) An examination shall is not be required for the renewal of any license. unless such If the license has been was revoked or suspended, in which case the applicant may be required, by the commissioner, to take and pass any a written or oral examination required by the department. In cases where a license has been expired for more than two years and was not been revoked or suspended, the applicant is may be required to take and pass any written and oral examinations required by the department. The commissioner is hereby authorized to promulgate rules as he or she considers necessary for the renewal of auctioneer licenses, including, but not limited to, requirements for continuing education of auctioneers.
§19-2C-5b. Change of address.
Each licensee must give written notice of any change of principal business location or residence address to the department within ten days of the change. In the event of a change of address, the department will issue a new license for the unexpired license period. The fee for the replacement license is ten dollars. A post office box is not acceptable as the principal business location.
§19-2C-6. Apprentice licenses; fees.

(a) The department of agriculture commissioner may grant an apprentice auctioneer's licenses auctioneer license to those persons considered a qualified by the commissioner person. Every applicant for an apprentice auctioneer's auctioneer license must take and pass a written examination relating to the skills and knowledge and statutes and regulations governing auctioneers. Every applicant shall furnish to the commissioner on specified forms provided by the department satisfactory proof of the following:
(a) (1) That he or she has a good reputation;
(b) (2) That he or she is a trustworthy character; and
(c) (3) That he or she is a citizen of the United States; and
(4) That he or she is at least eighteen years of age
.
(b) Any An apprentice auctioneer may take the examination to become an auctioneer after serving a two-year apprenticeship under a licensed auctioneer: Provided, That if the apprentice auctioneer has attended a nationally accredited graduate school of auctioneering, approved by the commissioner, he or she shall serve an apprenticeship of only six months. Before an apprentice auctioneer may take the auctioneer's auctioneer examination, the apprentice auctioneer shall conduct at least six eight auction sales under the direct supervision of the sponsoring auctioneer. The commissioner may waive the requirements of this section, on an individual basis, upon the presentation of written evidence that the applicant has educational training or exceptional experience in the auctioneering profession and that the applicant has been unable to obtain sponsorship by a licensed auctioneer: Provided, however, That the commissioner shall promulgate rules and regulations propose rules for legislative approval in accordance with article three, chapter twenty-nine-a of this code setting forth educational and experience qualifications which would entitle an individual to a waiver of the provisions of this section: Provided further, That the commissioner shall may not waive apprenticeship requirements for any applicant without the concurrence of the board of review.
(c) When any an apprentice auctioneer is discharged or terminates his or her employment with an auctioneer for any reason, the auctioneer shall immediately provide written notification to the commissioner. No discharged or terminated apprentice auctioneer shall thereafter perform any acts under the authority of his or her license until such the apprentice auctioneer applies for and receives a new revised license bearing the name and address of his new employer. No more than one license shall may be issued to any an apprentice auctioneer for the same period of time. The fee for the transfer of the revised license of an apprentice auctioneer to a new employer auctioneer is fifteen dollars.
The fee for the annual renewal of the apprentice auctioneer's license is fifty dollars. Bond requirements for an apprentice auctioneer shall be established by reasonable rules and regulations promulgated by the commissioner, and both the annual renewal fee and the bond must be filed with the department of agriculture: Provided, That the bond required by this section shall not be less than five thousand dollars. The department shall not issue an apprentice auctioneer's license until bond has been filed in accordance with this article. All apprentice auctioneer licenses expire on the thirty-first day of December of each year but are renewable upon the payment of the annual fee.
§19-2C-6b. Duties and responsibilities of apprentice auctioneer; sponsoring auctioneer.

(a) An apprentice auctioneer shall may only conduct or assist in auctions under the direct supervision of his or her sponsoring auctioneer. A licensed apprentice auctioneer may not enter into a contract to conduct an auction unless the contract is cosigned by his or her sponsoring auctioneer.
(b) The sponsoring auctioneer is responsible for the actions of an apprentice auctioneer. It is his or her responsibility to insure adherence to this and all applicable sections of state law: Provided, That if the apprentice auctioneer conducts auctions without the consent of his or her sponsor, only the apprentice auctioneer is subject to the penalties in section eight of this article.
(c) An auctioneer may not sponsor more than three apprentice auctioneers at one time. An auctioneer who serves as a sponsor must have held an active, valid license for the three consecutive years preceding the date on which the auctioneer is named as a sponsor.
§19-2C-6c. Procedure for obtaining nonresident auctioneer and apprentice auctioneer license.

(a) To qualify for a nonresident West Virginia auctioneer or apprentice auctioneer license by reciprocity, the applicant must show evidence of licensing in evidence of licensing by another state for a period of one year preceding the date of application and meet all other requirements of this article. The licensing out-of-state license may have been as be an apprentice auctioneer license or as an auctioneer license. Provided this qualification is met and the applicant meets all the other requirements as required by this article and by regulation, he or she shall The applicant may be licensed issued either as an apprentice auctioneer license or as an auctioneer license, whichever corresponds to the class of out-of-state license then held by the applicant based on a nonresident license, as the case may be.
(b) When an applicant's resident state has no licensing law for auctioneers does not license auctioneers or the applicant's resident state has no does not require a written or oral examination associated with its licensing requirements, the department of agriculture commissioner shall require proof that the applicant has been a practicing auctioneer for a period of two years preceding the date of application and meets all other requirements of this article. The proof of practice shall may be in the form of sale bills, contracts, sale permits and or other such evidence acceptable to the commissioner. Provided this qualification is met, and the applicant meets other requirements for licensing as required by the statutes and regulations, the applicant Qualified applicants shall be admitted to the next scheduled written and oral examination for auctioneers without being required to first serve an apprenticeship.
19-2C-6d. Continuing education.
(a) An auctioneer must complete six hours of continuing education each calendar year in order to qualify to renew his or her license for the next year.
(1) Only classes taught by course providers approved by the commissioner qualify for credit.
(2) At least three hours of the required six hours of class must be from core subjects. Core subjects are:
(A) West Virginia statutes and rules governing autioneering;
(B) Federal statutes and rules governing auctioneering;
(C) Auctioneering ethics;
(D) Escrow, trust and custodial accounts;
(E) Contracts; and
(F) Other subjects approved by the commissioner.
(3) At least three hours of the required six hours of class may be from elective subjects. Elective subjects are:
(A) Real estate law;
(B) Auction management;
(C) Bid calling;
(D) Advertising;
(E) Public speaking;
(F) Business law; and
(G) Other subjects approved by the commissioner.
(b) An auctioneer who conducts no more than three auctions in a calendar year must complete three hours of continuing education each calendar year in order to qualify to renew the license for the next year. The three hours may be from either or both core and elective subjects.
§19-2C-7. Orders of commissioner; hearing; review.

Any An order of the commissioner shall be served by him upon on all affected persons affected thereby by registered certified mail. Within ten days of the receipt of such the order, any party adversely affected thereby may, in writing, request a hearing before the commissioner. Such The hearing and any judicial review thereof shall be conducted in accordance with the applicable provisions governing contested administrative cases of articles five and six in article five, chapter twenty-nine-a of this code as if the same were set forth herein in extenso. The effect of any an order shall be suspended during the course of any the hearing or subsequent appeals.
§19-2C-8. Penalties for violation of article or rules.

(a) Criminal penalties. -- (1) Any person, firm, association or corporation violating any of the provisions provision of this article, or of the rules and regulations adopted pursuant to the provisions thereof including legislatively approved rules, shall be guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than fifty one hundred dollars nor more than two hundred fifty dollars for the first offense, and not less than four five hundred dollars nor more than one thousand dollars for the second and subsequent offenses. Magistrates have concurrent jurisdiction with circuit courts to enforce the provisions of this article.
(2) It shall be the duty of the prosecuting attorney of the county in which the violation occurred to represent the department, to institute proceedings, and to prosecute the person charged with a violation.
(b) Civil penalties. - (1) Any person violating a provision of this article or any legislatively approved rule or regulation adopted hereunder may be assessed a civil penalty by the commissioner. In determining the amount of any civil penalty, the commissioner shall give due consideration to the history of previous violations of the person, the seriousness of the violation, and the demonstrated good faith of the person charged in attempting to achieve compliance with this article before and after written notification of the violation; (2) the commissioner may assess a penalty of not more than two hundred fifty dollars for each the first offense, and not more than one thousand dollars for a second and subsequent offense; and (3) the civil penalty is payable to the State of West Virginia and is collectible in any manner now or hereafter provided authorized by law for the collection of debt debts. If any Any person liable to pay the a civil penalty who neglects or refuses to pay the same penalty within thirty days of written notice and demand for payment, shall be assessed, the amount of the civil penalty, together with interest at the rate of ten percent per year from the date the penalty was assessed to the date of payment, is a The penalty and interest constitute a lien in favor of the State of West Virginia and shall attach upon on the person's property, both real and personal, of such a person after the same has been entered and docketed to record in the county where such property is situated. The clerk of the county, upon receipt of the certified copy of such, shall enter same to record without requiring the payment of costs as a condition precedent to recording. when a lien is properly recorded in the county wherein the property is situated. There shall be no cost as a condition precedent to recording. (4) The commissioner may negotiate and enter into a settlement agreement for the payment of civil penalties.
(c) Notwithstanding any other provision of law to the contrary, the commissioner may promulgate and adopt rules which permit consent agreements or negotiated settlements for the civil penalties assessed as a result of violation of the provisions of this article.
(d) (c) No state court may allow for the recovery of damages for any administrative action taken if the court finds that there was probable cause for such the action.
§19-2C-8a. Revocation.

(a) In addition to the penalties in section eight of this article, the commissioner may, by order, suspend, deny or revoke any a license granted hereunder for any a violation of this article or the legislatively approved rules and regulations promulgated hereunder or for any of the following reasons:
(a)(1) Obtaining a license through by false or fraudulent representation;
(b)(2) Making any substantial misrepresentation in any an application for an auctioneer's auctioneer or apprentice auctioneer's auctioneer license;
(c)(3) Engaging in a continued or flagrant course of misrepresentation or for making false promises through an agent, advertisement or otherwise;
(d)(4) Failing to account for or remit within a reasonable time any fourteen business days of a completed sale or auction money belonging to others that comes into his or her possession as a result of a sale or auction;
(e)(5) Being convicted in any court of competent jurisdiction of this State or any other state of a criminal offense involving moral turpitude or a felony; or for failing to notify the department of any such a conviction within fifteen days of the conviction;
(f)(6) Engaging in any conduct of as an auctioneer which demonstrates dishonesty or incompetency;
(g)(7) Engaging in any other conduct that constitutes fraudulent or dishonest dealing; and
(h)(8) Acting as an attorney; for a client and
(9) Failing to establish an escrow or custodial account within three business days as required by section nine-a of this article.
(b) Any auctioneer or apprentice auctioneer who has had his or her license suspended, not renewed or revoked shall not be issued another such license until a period not to exceed two years has elapsed from the date of revocation must be afforded an opportunity to demonstrate the qualifications to be licensed. The application for reinstatement must be in writing and is subject to the procedures specified by the commissioner by rule. The commissioner may also require the successful completion of the examinations required for an auctioneer's auctioneer license or an apprentice auctioneer's auctioneer license.
§19-2C-9. Written contracts; exception.

(a) No person shall act as auctioneer on the may conduct a sale at public auction of any goods, wares, merchandise or of any other property, real or personal, until he or she has entered into a written contract in duplicate with the owner or consignor of the property to be sold, containing the terms and conditions upon which the licensee receives or accepts the property for sale at auction. No apprentice auctioneer shall be authorized to enter into a contract without the written consent of his or her sponsoring auctioneer. All contracts shall be in the name of and on behalf of the sponsoring auctioneer.
The commissioner may require by rule the following
(a) That written contracts between the auctioneer and the seller be made in duplicate;
(b)
That the original contract is to be retained by the auctioneer for a period of six months;
(c) That one copy of the contract is to be furnished to each person that entered into the contract;
(d) That an apprentice auctioneer may not contract directly with a client but only through his or her sponsoring auctioneer;
(e) That an apprentice auctioneer may not engage in a sale with an auctioneer by whom he or she is not sponsored without first obtaining the written consent of his or her sponsoring auctioneer; and
(f) That on all contracts between an auctioneer and a seller there shall be a prominent statement indicating that the auctioneer is licensed by the department of agriculture and bonded in favor of the state of West Virginia.
(b) The original contract must be retained by the auctioneer for a period of six months from the date the sale is completed.
(c) One copy of a contract must be furnished to each person who is a party to the contract.
(d) An apprentice auctioneer may not execute a contract to conduct a sale except through his or her sponsoring auctioneer
.
(e) All contracts executed by an auctioneer must contain a prominent statement that the auctioneer is licensed by the Department of Agriculture and is bonded in favor of the State of West Virginia.
§19-2C-9a. Sale proceeds; escrow account; accounting.
(a) All funds received by an auctioneer which are not disbursed to the contracting party immediately upon the completion of the sale must be deposited in an insured escrow account at a bank or savings and loan association located within this State for the benefit of the contracting party within three business days of the completed sale.
(b) The auctioneer must make payment to the contracting party no later than fourteen business days after the completed sale. At the time funds are disbursed, the auctioneer shall provide a written settlement statement setting forth: the name and address of the contracting party; the amount of the disbursement; and the reason for the disbursement. The settlement statement must be signed by both the auctioneer and the person receiving the disbursement. In addition to the settlement statement, the auctioneer must maintain written records which disclose the names of all buyers, the items purchased and the amount of payment received from each buyer. Further, the records must disclose the names of the seller and the amount payable to each seller. All written records must be delivered to the contracting party within fourteen business days of the completed sale.
(c) Any exception to settlement being made within fourteen business days must be in writing in the contract between the auctioneer and the seller.
(d) Each auctioneer must maintain his or her written records for no less than five years. In addition to the records set forth in subsections (a) and (b) of this section, an auctioneer must keep complete records showing all escrow account activity. The commissioner or his or her designated agent may inspect these records periodically without prior notice and may inspect these records whenever the commissioner determines that they may be pertinent to an investigation of a complaint against an auctioneer.



NOTE: The purpose of this bill is to modify and update auctioneer licensing requirements, fees and continuing education.


Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
This Web site is maintained by the West Virginia Legislature's Office of Reference & Information.  |  Terms of Use  |   Web Administrator   |   © 2014 West Virginia Legislature ****